Hua Nan Bank plans buying stake in Fujian Haixia Bank

The lender plans to acquire Chinese banks stakes as many as regulations allow considering future possibility of Taiwan banks being depent on the China market.

Taiwan's Hua Nan Financial Holdings Co, which has several times expressed its intention to acquire a stake in China's banks, is likely to invest in Fujian Haixia Bank after they sign a memorandum of understanding (MOU) on May 23.

Lin Ming-cheng, chairman of Hua Nan's banking arm, hinted at the possibility on May 21 when calling Fujian Haixia Bank "the best city bank" in China's Fujian Province.

Hua Nan's MOU with Fujian Haixia Bank, which took 14 months to negotiate, mainly focuses on cooperation in loan guarantees, which will provide Taiwanese companies in China, guaranteed by Hua Nan, easier access to loans from the Chinese bank.

Lin made the statement when he spoke about Hua Nan's strategies in China on Saturday, and said the company will consider all approaches, including expanding branches, setting up a subsidiary or buying a stake in Chinese banks.

Hua Nan's acquisition of stakes in Chinese banks, Lin said, will be as many as regulations allow since the future success of Taiwan's banks will depend upon the China market.

Lin added that Hua Nan would make its best effort to expand in China while not lagging behind its Taiwanese competitors in the private sector.

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